An increasing number are joining together to buy up troubled properties as more neighbors face the problem of a vacant house on the block. Housing research group PolicyLink said that such purchases are happening”a fair amount” and are usually good for a community. However they couldn’t find any solid numbers.
According to Kate Wilson of Fairway Independent Mortgage Corp, the cooperating neighbors can have trouble getting a mortgage because these consortiums of private investors usually don’t have enough money for a substantial down payment.
“Buyers need to be clear about what they’re committing themselves to,” says Kris Nelson, director of neighborhood programs for the Center for Urban and Regional Affairs at the University of Minnesota. He added that it takes more than good intentions to make a cooperative purchase work. “What happens when the property needs a new roof or expensive repairs?” he asked.